A collection of wealth improvement articles

One of the benefits available to the men and women of our Armed Services and, in many cases, staff supporting them is the ability to exclude items from taxable income. Here is a list of the most common items that may often be omitted from income tax.

Excluded Items

Combat zone pay

Compensation for active service while in a combat zone Note: Limited amount for officers

Other pay

Defense counseling

Disability, including payments received for injuries incurred as a direct result of a terrorist or military action

Group-term life insurance

Professional education

ROTC educational and subsistence allowances

State bonus pay for service in a combat zone

Survivor and retirement protection plan premiums

Uniform allowances

Uniforms furnished to enlisted personnel

Death allowances

Burial services

Death gratuity payments to eligible survivors

Travel of dependents to burial site

Family allowances

Certain educational expenses for dependents

Emergencies

Evacuation to a place of safety

Separation

Living allowances

BAH (Basic Allowance for Housing)

BAS (Basic Allowance for Subsistence)

Housing and cost-of-living allowances abroad paid by the U.S. Government or by a foreign government

OHA (Overseas Housing Allowance)

Moving allowances

Dislocation

Military base realignment and closure benefit (the exclusion is limited as described above)

Move-in housing

Moving household and personal items

Moving trailers or mobile homes

Storage

Temporary lodging and temporary lodging expenses

Travel allowances

Annual round trip for dependent students

Leave between consecutive overseas tours

Reassignment in a dependent restricted status

Transportation for you or your dependents during ship overhaul or inactivation

Per diem

In-kind military benefits

Dependent-care assistance program

Legal assistance

Medical/dental care

Commissary/exchange discounts

Space-available travel on government aircraft

Note: The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. There is no exclusion for the personal use of a government-provided vehicle.